$1.6 trillion U.S. stock market losses pressure crypto markets, with BTC price action coming full circle to linger near $20,000. Bitcoin (BTC) briefly lost $20,000 support overnight into Sep. 14 after hot United States inflation sent risk assets crashing lower.
Markets lose big in bid to "fight the Fed"
The move came amid a stocks rout triggered by Consumer Price Index (CPI) inflation data for August coming in above expectations.
Despite still being lower than July, the market had hoped for a quicker cooling of inflation more broadly and hence the chance of a quicker loosening of policy by the Federal Reserve.
With that prospect now appearing slim, equities indexes hemorrhaged value, with Apple losing $154 billion — the sixth-biggest daily loss in U.S. stock market history.
In total, U.S. stocks fell by approximately $1.6 trillion on the day — more than four times the Bitcoin market cap.
The U.S. dollar consequently increased in strength, with the U.S. dollar index (DXY) surging back towards twenty-year highs.
At the time of writing, the index circled just under 110, less than 0.9% below that macro peak seen earlier in the month.
"Septembear" comes back to haunt BTC bull
At the time of writing, cross-market crypto liquidations totaled $355 million, with Sep. 13 forming one of the largest long liquidation events in recent weeks.
Data from on-chain monitoring resource Coinglass also captured $88 million of short liquidations on that day.
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